HomeMy WebLinkAboutInvestment Report - Dec '08 �T�
CITY OF PALM DESERT
� �
FINANCE DEPARTMENT
INTEROFFICE MEMORANDUM
TO: RACHELLE KLASSEN, CITY CLERK
FROM: NIAMH ORTEGA, RECORDING SECRETARY�,ti��'�
DATE: FEBRUARY 3, 2009
SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS
Please find attached the Compliance Analysis and Investment Reports forwere presented
and approved at the January meeting of the Audit, Investment and Finance Committee for
the month of December 2008. Please include the report on the upcoming agenda for
review and acceptance by City Council.
Please feel free to contact me at Ext. 382 if you have any questions. Thank you.
nmo
Attachment (as noted)
� ��►�son
C1TY COUNCILACTION � � �� �``"� AbS�(�"
APPROVED nF.NIF.D _.__._�__�a _�q .
RCCEiVED�F�� OTHER ��
Vc��1;=iED �Y —"
M F LT[NG DATE " - � �-O
AYES: t � Original on file with Gity Clerk's Utfice
NOES; ___.
A�3�1?NT: ��'�S�n ___._�
�g;��`rA a1�1; N nfl� ��__
�;�.�.1�°��lF.f� ��Y: ' �_ _
G��i�;'sQ�<!I ���� �Y�c w-it�� C�ty Clcr� :'s Cjt°fi�:c
G:\FINANCE\NIAMH ORTEGA\INVESTMENT COMMITTEE\MEMOS\RKLASSENINVREPORT.WPD
�r City of Palm Desert �7�
� � City and Redevelopment Agency Port�ffolios
COMPLIANCE ANALYSIS AN�INVESTMENT REPORT
December 2008 _
Paul S. Gibson, C.C.M.T., Treasurer
Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer
Treasurer's Commentary
The Federal Open Market Committee(FOMC)will meet on January 27-28. No action is expected. The FOMC has adopted
a strategy of"quantitative easing" by increasing the money supply so that the economy can be "inflated" out of recession.
The U.S. banking system has been quasi-nationalized. This recession may prove to be the longest one since 1933.
Job losses in 2008 were the worst since 1945. This, along with falling asset prices, led to an all-time low in consumer
confidence in December. Consumer spending continued to contract as housholds shifted to saving money. U.S. trade
declined by 18% as the global recession took hold in other countries. A wave of retailer bankruptcy filings is expected in
2009, along with the possible failure of 300 banks and one major insurer. Commerciai office vacancies are expected to rise.
Excess supply, high unemployment rates, and low capacity utilization rates continue to support deflation.
Citigroup announced that it would breakup into two pieces ("good bank"/"bad bank") after sustaining an $8 billion loss in
4Q2008. Bank of America received more TARP money after sustaining a $15 billion loss from its Merrill Lynch acquisition.
According to the League of California Cities, 28 California cities and counties lost over$300 million in bad investments in
2008. Approximately$75 million of this was due to Lehman Brothers. There are indications that further public agency
losses may lie ahead due to the Madoff Scandal. The City of Palm Desert has not sustained any investment losses.
��zs G�� c.c.,y r
City Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
DEC-08 NOV-08 OCT-08 SEP-08 AUG-08 JUL-08
CITY
Month-End Book Value*"* $ 199,053 $ 213,607 $ 217,630 $ 211,223 $ 220,438 $ 222,674
Month-End Market Value**` $ 199,922 $ 213,168 $ 216,626 $ 224,865 $ 221,338 $ 223,460
PaperGain(Loss) $ 869 $ (439) $ (1,004) $ 13,642 $ 900 $ 786
Prior Year Book Variance $ (38,071) $ (27,138) $ (26,483) $ (23,021) $ (25,412) $ (33,469)
Interest Earnings $ 471 $ 529 $ 575 $ 647 $ 665 $ 688
Yield-To-Maturity 2.87% 3.04% 3.27% 3.70% 3.65% 3.69%
Weighted Maturity(Days) 490 463 470 489 490 500
Effective Duration 0.54 0.53 0.55 0.58 0.63 0.65
RDA
Month-End Book Value""" $ 251,852 $ 244,674 $ 245,100 $ 257,385 $ 284,134 $ 288,987
Month-End Market Value*"* $ 253,288 $ 245,564 $ 245,429 $ 257,654 $ 284,962 $ 289,777
Paper Gain(Loss) $ 1,436 $ 890 $ 329 $ 269 $ 828 $ 790
Prior Year Book Variance $ 877 $ (5,516) $ (5,663) $ (16,289) $ (5,730) $ (4,039)
Interest Earnings $ 287 $ 304 $ 325 $ 718 $ 727 $ 748
Yield-To-Maturity 1.40% 1.51% 1.60% 3.18% 3.05% 3.08%
Weighted Maturity(Days) 256 272 272 259 275 277
Effective Duration 0.24 0.26 0.28 0.29 0.28 0.30
"** Omits SLGSs.
_ City of Palm Desert-- Portfolio Characteristics
December 31, 2008
Dollars in Thousands
Aqeinq Interval Market Value
< 1 M $ 54,134 General Fund Ageing
<2M 5,979
<3M - 100 ---�----- --ry - --
<6M - � 80
< 1YR 20,565 0
<2YR 48,614 0 60
39 35
<3YR 9,820 � 40
<4YR - a° 4 15
<5YR - 20 0 0 � 0 0 0
>5YR - �
Total: $ 139,112 <1 M <2M <3M <6M <1 YR<2YR<3YR<4YR<5YR>5YR
Ratinqs* Market Value Credit Quality
AAA $ 131,184 �
AA 35,238 Unrated"'" 67%
12%
A 5,052 A
Unrated "` 22,669 3��°
AA
Total: $ 194,143 �g��o
Sector Market Value Asset Allocation MTNs
31%
MMF $ 34,759
Agencies 26,090
MTNs 60,196 Agencies
CAM P 40,356 13%
CAMP
RDA Loan 22,656 23%
GMRA 10,072 MMF
LAIF 14 18%
CP _ GMRq RDA Loan
Total: $ 194,143 5% 12%
Month Citv Yield LAIF Yield Variance Performance
Jan08 4.72 4.62 0.10
Feb 4.31 4.16 0.15
Mar 4.05 3.78 0.27 4.6
Apr 3.98 3.40 0.58
May 3.88 3.07 0.81 e 3.8
Jun 3.75 2.89 0.86 �-�,
Jul 3.69 2.88 0.82 } 3.0
Aug 3.65 2.78 0.87
Sep 3.70 2.77 0.93 2.2
Oct 3.27 2.71 0.56 Jan08 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nov 3.04 2.57 0.47
Dec 2.87 2.35 0.52 ■�:a3� r,t-�c� ■��;�i�v�`�e;�<�
* Standard and Poors
** LAIF,and City Loan to RDA Page 2
City of Palm Desert
Portfolio Holdings
December 31, 2008
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Medium-Term Notes
$ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,922,866 5.01 100.17 $ 2,925,107 Aa2 AA-
$ 3,795,000 BANK OF AMERICA 5.38 8/15/11 $ 3,916,851 4.05 101.83 $ 3,864,263 Aa2 AA-
$ 3,000,000 BANK OF AMERICA 4.25 10/1/10 $ 3,052,459 3.20 99.39 $ 2,981,772 Aa2 AA-
$ 15,270,000 CITIGROUP 4.13 2/22/10 $ 15,142,642 4.91 98.54 $ 15,047,439 Aa1 AA
$ 2,035,000 CITIGROUP 4.13 2/22/10 $ 2,018,027 4.91 98.54 $ 2,005,340 Aa1 AA
$ 1,000,000 CITIGROUP 4.63 8/3/10 $ 991,752 5.19 98.35 $ 983,509 Aa1 AA
$ 4,000,000 CITIGROUP 4.63 8/3/10 $ 3,967,009 5.19 98.35 $ 3,934,036 Aa1 AA
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 2,010,581 5.63 101.29 $ 2,061,325 Aaa AAA
$ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,928,902 5.65 105.06 $ 1,986,762 Aaa AAA
$ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,017,054 5.67 103.50 $ 2,069,996 Aaa AAA
$ 3,965,000 GENERAL ELECTRIC 4.88 10/21/10 $ 4,076,908 3.23 101.29 $ 4,016,291 Aaa AAA
$ 3,080,000 WACHOVIA 3.63 2/17/09 $ 3,074,876 5.02 99.59 $ 3,067,366 Aa3 A+
$ 2,000,000 WACHOVIA 7.80 8/18/10 $ 2,083,208 5.02 99.25 $ 1,985,016 Aa3 A+
$ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,021,493 4.93 103.00 $ 2,059,922 Aa2 AA
$ 3,000,000 WAL-MART 6.88 8/10/09 $ 3,070,513 2.90 103.00 $ 3,089,883 Aa2 AA
$ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,113,611 5.13 102.07 $ 4,082,884 Aa1 AA-
$ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,986,472 5.09 100.46 $ 2,009,196 Aa1 AA-
$ 2,020,000 WELLS FARGO BANK 4.20 1/15/10 $ 2,004,943 4.96 100.31 $ 2,026,270 Aa1 AA-
$ 60,011,000 Subtotal $ 60,400,166 4.69 $ 60,196,376
Federal Agencies--Coupon
$ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,006,255 4.61 105.22 $ 3,156,563 Aaa AAA
$ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,006,255 4.61 105.22 $ 3,156,563 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,990,609 5.59 102.66 $ 3,079,688 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,961,700 5.96 102.34 $ 2,046,875 Aaa AAA
$ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,026,815 4.87 102.03 $ 2,074,295 Aaa AAA
$ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,033,674 4.87 102.81 $ 2,106,628 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,987,959 4.88 102.71 $ 2,054,222 Aaa AAA
$ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 2,022,498 5.47 103.97 $ 2,143,836 Aaa AAA
$ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,021,583 5.50 102.81 $ 2,106,628 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,996,161 4.88 103.06 $ 2,061,250 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,963,261 5.47 105.19 $ 2,103,750 Aaa AAA
$ 25,193,000 Subtotal $ 25,016,769 5.13 $ 26,090,297
Local Agency Investment Pool
$ 14,155 L.A.I.F. 0.00 1/1/09 $ 14,155 2.35 100.00 $ 14,155 U U
$ 14,155 Subtotal $ 14,155 2.35 $ 14,155
"U"= Unrated Page 3
City of Palm Desert
Portfolio Holdings
December 31, 2008
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8�P
Local Agency Investment Pool
$ 40,298,880 C.A.M.P. 0.00 1/1/09 $ 40,298,880 1.74 100.00 $ 40,298,880 U AAA
$ 57,014 C.A.M.P. (DESERT WILLOW) 0.00 1/1/09 $ 57,014 1.74 100.00 $ 57,014 U AAA
$ 40,355,894 Subtotal $ 40,355,894 1.74 $ 40,355,894
Money Market Fund
$ 34,759,159 WF TREASURY PLUS 0.00 1/1/09 $ 34,759,159 0.09 100.00 $ 34,759,159 Aaa AAA
$ 34,759,159 Subtotal $ 34,759,159 0.09 $ 34,759,159
Government Managed Rate Account
$ 10,072,152 UNION BANK 0.00 1/1/09 $ 10,072,152 1.75 100.00 $ 10,072,152 U U
$ 10,072,152 Subtotal $ 10,072,152 1.75 $ 10,072,152
City of Palm Desert
$ 22,655,000 CITY OF PALM DESERT 0.00 1/1/39 $ 22,655,000 2.35 100.00 $ 22,655,000 U U
$ 22,655,000 Subtotal $ 22,655,000 2.35 $ 22,655,000
Total Investments
$ 193,060,361 $ 193,273,296 2.87 $ 194,143,033
Cash
$ 4,665,882 CITY MAIN CHKG 0.00 1/1/09 $ 4,665,882 0.00 100.00 $ 4,665,882 U U
$ 809,225 DESERT WILLOW CHKG 0.00 1/1/09 $ 809,225 0.00 100.00 $ 809,225 U U
$ 304,270 RECREATIONAL FAC CHKG 0.00 1/1/09 $ 304,270 0.00 100.00 $ 304,270 U U
$ - ART, FOOD&WINE CHKG 0.00 1/1/09 $ - 0.00 100.00 $ - U U
$ - MONTEREY 170 CHKG 0.00 1/1/09 $ - 0.00 100.00 $ - U U
$ 5,779,376 Subtotal $ 5,779,376 $ 5,779,376
Total Investments and Cash
$ 198,839,737 $ 199,052,672 $ 199,922,410
"U"= Unrated Page 4
City of Palm Desert
Portfolio Holdings
December 31, 2008
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
%of Portfolio
Corporate Issuers (Market Value)
BANK OF AMERICA 4.89%
CITIGROUP 10.99%
GENERAL ELECTRIC 5.07%
WACHOVIA 2.53%
WAL-MART 2.58%
WELLS FARGO BANK 4.06%
%of Portfolio
Agency Issuers (Market Value)
FED FARM CREDIT BANK 3.16°/a
FED HOME LOAN BANK 2.56%
FED HOME LOAN MTG CORP 5.24%
FED NATIONAL MTG ASSOC 2.08%
"U"= Unrated Page 5
Palm Desert Redevelopment Agency-- Portfolio Characteristics
December 31, 2008
Dollars in Thousands
Aqeinp Interval Market Value portfolio Ageing w/o SLGSs
< 1 M $ 32,186
<2M -
<3M 11,074 100
<6M - 90
80
< 1YR 18,149 0 70
<2YR 27,905 0 60
50
<3YR 4,208 0 30 34 �9 30
<4YR - a 20 12
< 5YR _ 10 0 0 4 0 0 0
0
> 5YR -
<1M <2M <3M <6M <1YR<2YR<3YR<4YR<5YR>5YR
Total: $ 93,522
Qualitv* Market Value Credit Quality
AAA $ 218,131 AAA
AA 23,811 87%
A 10,127
Unrated'* 32 A
Total: $ 252,101 4��° '�`
9°/a
Sector Market Value Asset Allocation
MMF $ 155,905 MMF
Agencies 30,911 62��a
MTNs 33,938
CAMP 21,254
GMRA 10,061 Agencies
LAI F 32 GM RA �2%
CP - 4% CAMP MTNs
Treasuries - 8% 14%
Total: $ 252,101
Month RDA Yield LAIF Yield Variance Performance
Jan08 4.45 4.62 -0.17
Feb 3.78 4.16 -0.38 5.0
Mar 3.36 3.78 -0.42
Apr 3.35 3.40 -0.05 4.0
May 3.14 3.07 0.06 0
Jun 3.09 2.89 0.20 �0 3.0
m
Jul 3.08 2.79 0.29 } 2.0
Aug 3.05 2.78 0.27
Sep 3.18 2.77 0.41 1.0
Oct 1.60 2.71 -1.11 Jan08 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nov 1.51 2.57 -1.06
D2C 1.40 2.35 -0.95 ■LAIF Yield ■RDA Yield 1
* Standard and Poors
""' LAIF Page 6
Palm Desert Redevelopment Agency
Portfolio Holdings
December 31, 2008
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Medium-Term Notes
$ 4,000,000 CITIGROUP 6.20 3/15/09 $ 4,008,216 5.13 99.57 $ 3,982,904 Aa1 AA-
$ 4,070,000 JP MORGAN CHASE 3.50 3/15/09 $ 4,057,290 5.12 100.01 $ 4,070,395 Aa3 A+
$ 3,055,000 JP MORGAN CHASE 3.50 3/15/09 $ 3,045,460 5.12 100.01 $ 3,055,296 Aa3 A+
$ 3,000,000 JP MORGAN CHASE 6.00 1/15/09 $ 3,003,424 3.00 100.04 $ 3,001,083 Aa3 A+
$ 3,000,000 WAL-MART 6.88 8/10/09 $ 3,036,405 4.76 103.00 $ 3,089,883 Aa2 AA
$ 3,000,000 WAL-MART 4.13 7/1/10 $ 3,052,432 2.91 102.36 $ 3,070,797 Aa2 AA
$ 13,625,000 WELLS FARGO BANK 4.20 1/15/10 $ 13,788,769 3.00 100.31 $ 13,667,291 Aa1 AA-
$ 33,750,000 Subtotal $ 33,991,995 4.69 $ 33,937,649
Federal Agencies--Coupon
$ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,021,762 4.88 104.47 $ 2,089,488 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,998,709 4.87 102.53 $ 2,050,625 Aaa AAA
$ 4,900,000 FED FARM CREDIT BANK 4.90 9/22/10 $ 4,920,237 4.65 106.53 $ 5,220,031 Aaa AAA
$ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,485,914 5.59 102.66 $ 4,619,531 Aaa AAA
$ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,994,563 4.89 101.88 $ 2,042,594 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,974,667 5.49 107.75 $ 2,155,000 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,974,330 5.50 107.75 $ 2,155,000 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,040,089 5.54 109.06 $ 2,181,250 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,808,983 5.54 109.06 $ 4,072,394 Aaa AAA
$ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,201,040 4.89 104.09 $ 4,325,095 Aaa AAA
$ 29,294,000 Subtotal $ 29,420,295 5.13 $ 30,911,008
Local Government Investment Pool
$ 21,653 L.A.I.F. 0.00 1/1/09 $ 21,653 2.57 100.00 $ 21,653 U U
$ 9,893 L.A.I.F.(HOUSING) 0.00 1/1/09 $ 9,893 2.57 100.00 $ 9,893 U U
$ 31,546 Subtotal $ 31,546 2.57 $ 31,546
Local Government Investment Pool
$ 19,155,173 C.A.M.P. 0.00 1/1/09 $ 19,155,173 1.74 100.00 $ 19,155,173 U AAA
$ 2,098,338 C.A.M.P.(HOUSING) 0.00 1/1/09 $ 2,098,338 1.74 100.00 $ 2,098,338 U AAA
$ 21,253,511 Subtotal $ 21,253,511 1.74 $ 21,253,511
Government Managed Rate Account
$ 10,060,908 UNION BANK 0.00 1/1/09 $ 10,060,908 1.75 100.00 $ 10,060,908 U U
$ 10,060,908 Subtotal $ 10,060,908 1.75 $ 10,060,908
Money Market Fund
$ 155,905,238 WF TREASURY PLUS 0.00 1/1/09 $ 155,905,238 0.09 100.00 $ 155,905,238 Aaa AAA
$ 155,905,238 Subtotal $ 155,905,238 0.09 $ 155,905,238
"U"= Unrated Page 7
Palm Desert Redevelopment Agency
Portfolio Holdings
December 31, 2008
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Total Investments
$ 250,295,203 $ 250,663,492 1.40 $ 252,099,860
Cash
$ 802,055 HOUSING AUTH CHKG 0.00 1/1/09 $ 802,055 0.00 100.00 $ 802,055 U U
$ 386,085 HOUSING AUTH TRUST 0.00 1/1/09 $ 386,085 0.00 100.00 $ 386,085 U U
$ 1,188,140 Subtotal $ 1,188,140 $ 1,188,140
Total Investments and Cash
$ 251,483,343 $ 251,851,633 $ 253,288,001
%of Portfolio
Corporate Issuers (Market Value)
CITIGROUP 1.57%
JP MORGAN CHASE 4.00%
WAL-MART 2.43%
WELLS FARGO BANK 5.40%
%of Portfolio
Agency Issuers (Market Value)
FED FARM CREDIT BANK 3.70%
FED HOME LOAN BANK 4.33%
FED HOME LOAN MTG CORP 2.47%
FED NATIONAL MTG ASSOC 1.71%
"U"= Unrated Page 8
STATEMENT OF COMPLIANCE
The investment portFolios of the City of Palm Desert("City")and the Palm Desert Redevelopment Agency("RDA")are
governed by federal, state, and local law. The City Treasurer's"Statement of Investment Policy" is more restrictive than the
California Government Code. The Palm Desert Audit, Investment, and Finance Committee and the Palm Desert City
Council review the Statement of Investment Policy annually.
For the month ended December 31,2008,the City and the RDA investment portfolios were in compliance with all app�icable
federal, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment
strategies, based upon the stated objectives of safety, liquidity, and yield(in order of priority).
Barring unforeseen events,the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert
and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA
portfolio could be liquidated in order to meet any significant, unexpected cash requirements.
Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the
market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities
are held in escrow accounts, and are therefore not included in this report as assets. All balances are bank balances.
Respectfully Submitted on January 27, 2008,
��zs ��� c.c.,y r �
City Treasurer
SUMMARY OF AUTHORI2ED INVESTMENTS
' California Government Code City Investment Policy
CA Govt Maximum Maximum Quality Maximum Maximum Quality %of City %of RDA
Code Investment Category Maturity Limit S&P/Mdys Maturity Limit S&P/Mdys Portfolio Portfolio
53601(a) Palm Desert Bonds 5 Years No Limit Not Authorized(1)
53601(b) U.S.Treasuries 5 Years No Limit 5 Years No Limit 0.0% 0.0%
53601(c) CA State Debt 5 Years No Limit Not Authorized
53601(d) CA Local Agency Debt 5 Years No Limit Not Authorized
53601 e Federal A encies 5 Years No Limit 5 Years 30% 6% 12.9% 11.7%
53601(fl Bankers's Acceptances 180 Days 40% 180 Days 40% A-1 &P-1 - -
53601( ) Commercial Paper 270 Days 25% A-1+or P-1 270 Days 25% A-1+or P-1 0.0% 0.0%
53601(h) Negotiable CDs 5 Years 30% 5 Years 30% AA-or Aa3 - -
53601(i) Repos 1 Year No Limit 30 Days 20% AAA&Aaa - -
53601(i) Reverse Repos 92 Days 20% Not Authorized
53601Q) Medium-Term Notes 5 Years 30% A 5 Years 30% A 31.3% 13.6%
53601(k) Mutual Funds 90 Days 20% AAA&Aaa 90 Days 20% (2) AAA&Aaa 18.0% 62.2%
53601(I) Trust Indenture Debt NotAuthorized
53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized
53601(k) Local Government AAA&Aaa AAA&Aaa
Investment Pools 90 Days 20% or Advisor 90 Days 20°/a (2) or Advisor 26.1% 12.5%
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& NotAuthorized
Securities AA(Security
LAIF No Limit No Limit 0.0% 0.0%
(1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 88.3% 100.0%
(2) Maximum limit for mutual funds and local government investment pools, excluding bond proceeds.
" Certified California Municipa/Treasurer Page 9